Sun TV Network's Q3FY23 PAT declines 9% to Rs 416.32 crore

Sun TV Network posted a PAT of Rs 416.32 crore in Q3FY23, resulting in a 9% decline from the Rs 457.39 crore in profit recorded in the corresponding quarter of the previous year.

PAT came down as a result of 17% drop in revenue, which was partially offset by lower costs and higher other income. 

For the quarter ended December 31, 2022, the revenues (excluding IPL and movies) stood at Rs 810.51 crore as against Rs 829.57 crore for the corresponding quarter ended December 31, 2021 and the overall revenue was at Rs. 857.51 crores as against Rs 1,033.10 crore for the quarter ended December 31, 2021.

The EBITDA stood at Rs 573.07 crore for Q3FY22 as against Rs 721.87 crore during the previous quarter ended December 31, 2021. EBITDA tumbled 20.61% YoY on lower revenue. 

“We expect a soft PAT CAGR of 5% over FY23-25 due to lower revenue growth visibility. Other key concerns are the risk of market share loss and lower investment in the OTT segment compared to peers,” Motilal Oswal Financial Services said.

They also stated that continued investment in several non-fiction shows in South India and primetime fiction shows is expected to help Sun TV maintain growth momentum in viewership.

The key concerns include delayed investments in the fast-growing OTT space and the focus remaining on movie production over the next two years, except for the monetization of its existing library. Recovery in ad spends remains a key monitorable, Motilal Oswal Financial Services added. 

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